Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
2 T+ q; ^" i* [companies producing Jet fuels but Biofuels. Also no wonder if some of
: h8 \1 F  C: e: Dthese oil producer will go bankrupt or out of the business even if
, W( Q. E( v* U& ?6 U; B! B) {+ Zcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

3 r4 }+ M+ J# X# DRecently OPEC reduced crude oil production twice over just a few
9 Z$ B! a0 K6 Dmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
. d" ?, x$ t: TA year ago these things would have spiked the price of crude oil by at
8 {: X+ T+ h+ T8 t% d5 @3 s, Aleast $50.00 per barrel. Today, oil price declined by a record amount.


1 u1 \& d! Z' M5 u+ _There are several reasons the price of oil is decreasing in the face
$ d' c, L7 r7 wof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

8 x' h- M" f6 A% m* F7 U3 s! f
( f9 C0 H; X! u4 f2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
: g& D' `7 c, p8 s+ Q) ^+ |

3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
: T. y" ]/ A5 G6 [- ]
0 a& h7 H# x) F; V% ]& m& Q
+ F1 e0 s1 z1 l6 S4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
( e) ~; g* y# Y, mracing to produce bio fuels.
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! O8 K! I) i6 ^" P) d+ ]4 C$ {0 K
, y! h# j, S5 {) r$ j  @9 s5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
9 J  _8 r% q+ t. O* N! r' ?( `cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


/ t. n2 A. q6 F+ F6. There are 99 nuclear reactors in various stages of planning and
: ?$ ~& |2 d4 Z# u% o" r. Bconstruction around the world at this time. Several hundred more are
- S$ [4 a2 b2 Y, f& cexpected to be built in the future. Much of the energy they produce
& y( n* H5 f3 {2 e. Cwill replace oil.
, M8 w: e! o% L/ g! e

7. Every company in any form of transportaion business is replacing
+ M  v  E$ m9 @1 L! K: `0 M( Nolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
6 T1 T) _5 {& ]0 vequipment.

7 w5 _$ h! G  T' g& R& e
Airlines are flying airplanes with bio-fuel. They are finding the bio-
) w6 ]- p  y7 m) }fuel is cleaner and performs better than jet fuel.
7 S9 p: [3 W' n  B7 ]

8. Cities and counties throughout the US are selling the rights to
# G7 f/ x9 W% rcapture methane gas from landfills. This is a huge source of gas
' Y7 k$ t: [5 r1 b# Lavailable at very little cost or risk. The gas is displacing crude
! ~* [3 E) ~3 d6 m  @oil.
9 ?1 Y& C, v& Z: B. `6 j
7 W. ^0 m2 k) [0 s) v# I
( F' @' C. Y2 Q; b: i) K9 Y$ I9. Coal is being transformed into a clean burning liquid fuel. The CO2
/ a. t* {3 J  G* m. e- _produced as a byproduct is sold to oil companies for injection into
  x$ e. d5 v5 a& F$ @* d6 }oil wells.


, K' \* h* V+ R$ j: M10. Solar, wind and ocean energy is displacing oil as an energy
  N* ?8 B" c8 T& C7 S8 Dsource. Three new wind turbines are being erected every day in the US.
( s1 ]& T& F+ F8 V  S5 q' L

Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
( |# x+ R) R* @5 I5 rto control oil prices.


! N2 @8 n, S$ [  o. PWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
% h- t8 {) T! I2 @; V7 x! _7 \9 ivalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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# r+ K& J: F9 {* \The above articles are from WSJ .............PUBLISHED ON 9TH JAN
* [8 y/ Z9 j$ q; J. B* x2009 ... FYI-Only